SCOTTSDALE, AZ—Downtown Scottsdale is experiencing unprecedented employment growth from healthcare, technology and financial services companies. Proximity to advanced education, abundant amenities and excellent demographics continue to attract top companies such as Yelp, Zenefits, Scottsdale Healthcare, Weebly, Groupon, CA Technologies, McKesson, Softwench Solutions, Yodle, Theranos and Webfilings.
Multifamily continues to capitalize on that employee-driven growth. One such asset is Luxe Scottsdale, built with an urban design, condominium finishes and community amenities. The first of four developments in Arizona, it was recently developed by seller, Atlanta-based Wood Partners and acquired by Passco Companies.
The units include 10-foot ceilings, fully appointed kitchens with granite countertops and tile backsplashes, stainless steel appliances, contemporary cabinetry and deep single-basin under-mount sinks. All homes have vinyl plank wood flooring, full-size washer/dryers and open patios or balconies. The property is a National Green Building Standard Bronze-certified community. Luxe Scottsdale will be managed by Allison-Shelton.
Gary Goodman, senior vice president, acquisitions for Passco Companies, tells GlobeSt.com: "Luxe Scottsdale's attractive rent structure creates broad-based demand. The community offers residents upscale finishes and a Downtown Scottsdale lifestyle at an attractive price point relative to competing multi-family communities. The resulting rent spread provides a compelling opportunity for substantial rent growth once the community achieves stabilized occupancy."
Luxe Scottsdale is located 8444 E. Indian School Rd. Built in 2015, the property features a pool area with spa, two-story clubhouse with walk-out deck overlooking the pool, 24-hour fitness center featuring touch-screen equipment, cyber café bar area for events and cooking demonstrations, and a commercial-grade dog washing station.
"This property is an example of Wood Partners' thoughtful and integrated business model, through which we are consistently able to produce unique and beautiful assets," said Todd Taylor, Arizona and Nevada development director for Wood Partners, which also developed 3rd and Thomas, Alta Tempe and Alta Steelyard Lofts. "Combining style, luxury and convenience, the Luxe Scottsdale community, which was formerly called Alta Scottsdale, delivers gorgeous, modern units and amenities that clearly match the desires of our target market."
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE's Phoenix office represented Wood Partners in the transaction.
"Multi-family fundamentals remain strong as we close out the year, and we expect more of the same heading into 2016," said Cunningham. "Numerous third-party forecasts have pegged Phoenix as a leader among major western markets in job growth and population growth through 2018. The community's strategic location on Indian School Road, which serves as the gateway to Downtown Scottsdale, positions Luxe Scottsdale to benefit from demand drivers generated through significant employment announcements in that submarket."
Goodman notes that Luxe Scottsdale's close proximity to multiple employment centers are attractive components for continued renter demand for the property.
"Luxe Scottsdale's location in the coveted Downtown Scottsdale submarket provides a long-term competitive advantage, high barriers to entry for future multi-family product, and immediate access to Downtown Scottsdale's upscale retail, vibrant restaurants, nightlife and an expanding hub of dynamic employment. This new community, which is still in its initial lease-up, has rents which are lower than its competition, making this an extremely smart acquisition for Passco Companies. The vibrant downtown continues to attract new eateries and shops that Millennials want to incorporate into their live/work/play environment. Tech and healthcare companies seeking these young, educated employees to fill the available office space to the point that another 1.5 million square feet of office product is now actively in development."
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
